Flip the Funnel: How to Use Existing Customers to Gain New Ones

ENTHUSIASTS VERSUS INFLUENCERS

And as long as we’re rethinking the notion of loyalty, it’s probably also a good idea to do the same with the word “customer” itself. Who exactly is a—or specifically, our—customer? Is it someone who pays money or attention; consumes our products or services; or simply one who uses our intellectual property or brand equity?

Figure 6.5 Three Types of Premium “Customers”

Source: © Joseph Jaffe.

We do a fairly satisfactory job of segmenting our prospects in the marketplace; but how do or should we segment our customers—both direct (compensation) and indirect (attention)?

Figure 6.5 above offers a breakdown of three types of premium customers:

1. The 80:20 rule: The prototypical 20 percent of customers responsible for 80 percent of revenue

2. The 99:1 rule: The 1 percent of influences, iReporters,¹⁶ or content creators responsible for 99 percent of our buzz

3. The sweet spot: customers who both talk about and purchase from the brand

Using this segmentation, several key implications emerge:

1. Companies should utilize and deploy three distinct approaches when it comes to engaging walkers, talkers, and a hybrid of the two.

2. Companies should distinguish and differentiate between enthusiast and influencer behavior.

3. There’s no black and white, but rather 256 shades of gray. Although there are generalizations, customers exhibit both enthusiast ...